Forex Canadian Class Action

The law firms of Koskie Minsky LLP, Sotos LLP, Siskinds LLP, and Camp Fiorante Matthews Mogerman are counsel in a class action against financial institutions (the “Defendants”) who conspired among themselves to fix, raise, maintain, stabilize, control, or enhance unreasonably the price of currency purchased in the foreign exchange or foreign currency market (the “FX Market”), and to fix, maintain, control, prevent, lessen, eliminate, or unduly lessen the supply of foreign currencies on the FX Market.

Beginning at least as early as 2003 and continuing through 2013, it is alleged that the Defendants conspired with each other to fix prices in the FX market. Through the daily use of multiple chat rooms with revealing names such as “The Cartel,” “The Bandits’ Club,” and “The Mafia,” the Defendants communicated directly with each other to coordinate their: (i) fixing of spot prices; (ii) manipulating FX benchmark rates; and (iii) exchanging key confidential customer information in an effort to trigger client stop loss orders and limit orders. The Defendants’ conspiracy affected dozens of currency pairs, including the U.S. and Canadian dollar (USD/CAD) currency pair, which is one of the world’s highest volume trading currency pairs. Due to the importance of spot prices, the Defendants’ conspiracy impacted all manner of FX Instruments, including those trading both over-the-counter and on exchanges.

It is alleged that to give effect to their conspiracy, the Defendants did the following:

The portal to make an application for compensation under the settlement fund in this action is now open. A copy of the notice explaining how to apply for compensation is available here.

November 2, 2018

A settlement has been reached with Morgan Stanley. The hearing to approve the settlement is scheduled for January 24, 2019.

June 13, 2018

TD and BMO to be Added as Defendants to FX Class Action

On June 13, 2018, the Court of Appeal for Ontario released its decision in the Canadian Foreign Exchange Class Action, permitting the plaintiffs to amend their statement of claim to add TD and BMO as defendants to an existing class action alleging a secret conspiracy to manipulate the foreign exchange market. The Court of Appeal held that the motion judge erred in dismissing the plaintiffs’ motion to add TD and BMO as defendants on the basis that the claim against TD and BMO was statute-barred.

As a result of the Court of Appeal’s decision, the following entities will be added as defendants:

On behalf of TD:

Toronto Dominion Bank

TD Securities

TD Bank USA, N.A.

TD Group Holdings

TD Bank N.A.

On behalf of BMO:

Bank of Montreal

BMO Financial Corp

BMO Harris Bank N.A.

BMO Capital Markets Limited

A Press Release has been issued on June 13, 2018. To view a copy of the Press Release, please click here. To view the Reasons for Decision, please click here.

June 6, 2018

The Ontario court will hold a hearing on July 4, 2018 at 10:00AM at Osgoode Hall, 130 Queen Street West, Toronto, Ontario during which Class Counsel will seek court approval of a protocol for distributing the aggregate settlement funds, plus accrued interest, less a reserve fund, court approved legal fees and other expenses (the “Distribution Protocol”). The reserve fund will be held in a trust account for the benefit of Settlement Class Members. Class Counsel will apply to the Ontario and Quebec courts to have the reserve funds applied against future disbursements and/or adverse costs awards.

A summary of the Distribution Protocol and more information about the July 4th hearing can be found in the Short Form Notice available here and in the Long Form Notice available here. These notices only summarize the Distribution Protocol. A copy of the Distribution Protocol is available here.

Also during the July 4th hearing, Class Counsel will be seeking approval of its fees and disbursements. Class Counsel will be requesting legal fees of up to 18.5% of the settlement funds, less legal fees previously awarded, plus disbursements and applicable taxes, be approved by the courts and paid out of the settlement funds.

The Ontario court has certified this action for settlement purposes against the following defendants: The Bank of Tokyo Mitsubishi UFJ, Ltd., Bank of Tokyo-Mitsubishi UFJ (Canada) (collectively, “BTMU”); and Société Générale S.A., Société Générale (Canada) and Société Générale (collectively, “SocGen”).

The Ontario court has approved a notice of certification for settlement purposes which, among other things, explains what steps someone can take if they object to the settlements reached with BTMU and/or SocGen. The motion to approve the BTMU and SocGen settlements, and class counsel’s request for reimbursement of its disbursements, in Ontario is scheduled for September 18, 2017 and in Quebec on September 22, 2017. Please click here to review the notices.

July 4, 2017

Société Générale S.A., Société Générale (Canada) and Société Générale (collectively “SocGen,”) entered into a formal settlement agreement whereby SocGen agreed to pay CAD$1,8000,000. The settlement is a compromise of disputed claims and SocGen does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

June 30, 2017

The Bank of Tokyo Mitsubishi UFJ, Ltd., Bank of Tokyo-Mitsubishi UFJ (Canada) (collectively, “BTMU”) entered into a formal settlement agreement whereby BTMU agreed to pay CAD$450,000. The settlement is a compromise of disputed claims and BTMU does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

The Ontario court has approved a notice of certification for settlement purposes which, among other things, explains what steps someone can take if they object to the settlements reached with Barclays, HSBC, RBS and/or Standard Chartered. The motion to approve the Barclays, HSBC, RBS and Standard Chartered settlements, and class counsel’s request for reimbursement of its disbursements, in Ontario is scheduled for September 18, 2017 and in Quebec on September 22, 2017. Please click here to review the notices.

May 29, 2017

Standard Chartered plc entered into a formal settlement agreement whereby Standard Chartered plc agreed to pay CAD$900,000. The settlement is a compromise of disputed claims and Standard Chartered plc does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

May 29, 2017

The Royal Bank of Scotland Group plc, RBS Securities Inc., The Royal Bank of Scotland N.V., and The Royal Bank of Scotland plc (collectively, “RBS”) entered into a formal settlement agreement whereby RBS agreed to pay CAD$13,220,000. The settlement is a compromise of disputed claims and RBS does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

May 24, 2017

HSBC Holdings PLC, HSBC Bank PLC, HSBC North America Holdings Inc., HSBC Bank USA, N.A., HSBC Bank Canada (collectively, “HSBC”) entered into a formal settlement agreement whereby HSBC agreed to pay CAD$15,500,000. The settlement is a compromise of disputed claims and HSBC does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

Bank PLC, Barclays Capital Inc., Barclays Capital Canada Inc. (collectively, “Barclays”) entered into a formal settlement agreement whereby Barclays agreed to pay CAD$$19,677,205.88. The settlement is a compromise of disputed claims and Barclays does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

The Ontario court has approved a notice of certification for settlement purposes which, among other things, explains what steps someone can take if they object to the settlements reached with Goldman Sachs, JPMorgan and/or Citi. The motion to approve the Goldman Sachs, JPMorgan and Citi settlements, and class counsel’s request for fees, in Ontario is scheduled for April 13, 2017 and in Quebec on May 2, 2017. Please click here to review the notice.

November 29, 2016

Citigroup Inc., Citibank, N.A., Citibank Canada, and Citigroup Global Markets Canada Inc. (collectively, “Citi”) entered into a formal settlement agreement whereby Citi agreed to pay CAD$21,000,000. The settlement is a compromise of disputed claims and Citi does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

November 28, 2016

JPMorgan Chase & Co., J.P. Morgan Bank Canada, J.P. Morgan Canada, JPMorgan Chase Bank National Association (collectively, “JPMorgan”) entered into a formal settlement agreement whereby JPMorgan agreed to pay CAD$11,500,000. The settlement is a compromise of disputed claims and JPMorgan does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

The Goldman Sachs Group, Inc., Goldman, Sachs & Co., Goldman Sachs Canada Inc. (collectively, “Goldman Sachs”) entered into a formal settlement agreement whereby Goldman Sachs agreed to pay CAD$6,750,000. The settlement is a compromise of disputed claims and Goldman Sachs does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

The Ontario court has approved a notice of certification for settlement purposes which, among other things, explains what the class action is about and the options for anyone who does not want to participate in the class action or who wants to participate but objects to the settlements reached with UBS, BNP and/or Bank of America. The motion to approve the UBS, BNP and Bank of America settlements, and class counsel’s request for fees, in Ontario is scheduled for November 9, 2016 and in Quebec on November 15, 2016. Please click here to review the notice.Please click here for the opt-out form.

The Trustees of the Labourers’ Pension Fund of Central and Eastern Canada have been added to the claim as a proposed representative plaintiff.

July 29, 2016

Bank of America Corporation, Bank of America, N.A., Bank of America Canada, and Bank of America National Association (collectively “Bank of America”) entered into a formal settlement agreement whereby Bank of America agreed to pay CAD$6,500,000. The settlement is a compromise of disputed claims and Bank of America does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

July 27, 2016

BNP Paribas Group, BNP Paribas North America, Inc., BNP Paribas (Canada), and BNP Paribas (collectively “BNP”) entered into a formal settlement agreement whereby BNP agreed to pay CAD$4,500,000. The settlement is a compromise of disputed claims and BNP does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

May 20, 2016

UBS AG, UBS Securities LLC and UBS Bank (Canada) (collectively “UBS”) entered into a formal settlement agreement whereby UBS agreed to pay CAD$4,950,000. The settlement is a compromise of disputed claims and UBS does not admit any wrongdoing or liability. The settlement agreement must be approved by the courts for its terms to become effective. Please click here to view a copy of the settlement agreement.

A class action is a lawsuit that is brought by one or more persons on behalf of a larger group of people whose claims share common legal and/or factual issues. Class actions provide a cost-effective way for groups of people with common interests to pursue a legal claim.

What does “certification” mean?

Certification is the motion where the court determines whether the action can properly be pursued as a class action. The court will consider factors such as whether the claims of the class members raise common legal and/or factual issues and whether a class action is the preferable method of pursuing the claims (as opposed to other methods, such as individual actions).

Do I have to pay anything to participate in the class action?

Class action lawyers are usually paid on a contingency basis. This means that class counsel are only paid if successful. Class counsel are paid a percentage of any settlement or court award. Class counsel fees are subject to court approval.

Who is affected by the class action?

You are affected by the class action (a “class member”) if you entered into an “FX Instrument” in Canada between January 1, 2003 and December 31, 2013 either directly or indirectly through an intermediary, and/or purchased or otherwise participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that entered into an “FX Instrument”.

An “FX Instrument” includes FX spot transactions, outright forwards, FX swaps, FX options, FX futures contracts, options on FX futures contracts, and other instruments traded in the FX market in Canada or on a Canadian exchange.

Can I join the class action?

There are no steps required to “join” the class action. Unless you opt-out (exclude yourself from the class action), assuming you fall within the scope of the class definition, you are automatically included in the class action.

What should I do to protect my rights?

To protect your rights, you should:

Keep records of any Canadian purchases or sales of FX Instruments between January 1, 2003 and December 31, 2013.

If the lawsuit is certified as a class action, you will receive a formal notice from the court explaining the nature of the case and providing you with the opportunity to opt out if you wish. General information about the lawsuit will be posted online at www.forexclassaction.ca.